Finance

- Dr. Shailesh Rastogi

Executive Development Program L&T Corporate Division, Lonavala 1

 The Plan
1. The Beginning
2. Understanding of financial statements
3. Analysis of financial statements: Ratio
analysis
4. Working capital management
5. Stock market: Preliminary discussion

Executive Development Program L&T Corporate Division, Lonavala 2

1. The Beginning

3
2. Analysis of Financial Statement

Executive Development Program L&T Corporate Division, Lonavala 4

 Heads for Discussion
1. Balance Sheet
2. Income Statement
3. Cash Flow Statements

Executive Development Program L&T Corporate Division, Lonavala 5

 1. Balance SHeet
Liability Assets
Owner’s Equity Fixed Assets
Long Term Liability Intangible Assets
Other Long Term Liability Investments
Current Liability Current Assets
Total Total

Executive Development Program L&T Corporate Division, Lonavala 6

 2. Income Statement
Three part of business. Four costs and three
profits.

Costs Profits
Prime Costs Gross Profit
Cost of Goods Sold Operating Profit
Cost of Sales Net Profit
Total Costs Cash Profit

Executive Development Program L&T Corporate Division, Lonavala 7

Income Statement
Income Statement
Sales
-Prime Cost
-Factory OH
-Administrative OH Cost of Goods Sold
Gross Profit
-Non Production OH Cost of Sales
Operating Profit
-Finance Charges Total Cost
Net Profit

Executive Development Program L&T Corporate Division, Lonavala 8

 Synchronization
CoGS= Total Expenses-Other Expenses-Finance
Charges
Non Production OH=Other Charges
Operating Profit=Earning Before Tax+ Finance
Charges

Executive Development Program L&T Corporate Division, Lonavala 9

3. Cash Flow Statement
Cash Flow (Indirect Method)
Operations Activity
Investment Activity
Financing Activity
Summation Cash Profit

Executive Development Program L&T Corporate Division, Lonavala 10